21.11.2023
TAALERI PLC STOCK EXCHANGE RELEASE 21 NOVEMBER 2023 AT 8:40
Taaleri updates its strategy and long-term targets – growth driven by substantial industrial investments and funds under management
Taaleri has updated its strategy and long-term financial targets. At the core of the updated strategy are the private equity fund business and substantial industrial investments especially in bioindustry. Taaleri’s goal is to increase its assets under management to EUR 4 billion and the amount of direct industrial investments to at least EUR 100 million by the end of 2026. Taaleri’s vision is to become a leading investment manager operating internationally in bioindustry and renewable energy.
Taaleri’s growth in the bioindustry and renewable energy ecosystems is supported by sustainability-driven megatrends and a strong demand for novel industrial and energy solutions. Through investments in bioindustry, Taaleri utilises renewable and recyclable raw materials to create sustainable products through industrial innovations and technologies. In renewable energy, Taaleri develops utility-scale clean energy solutions.
“Our purpose is to combine our deep industrial and financial expertise with capital to create attractive returns for our stakeholders and to build a better future. We create value by combining extensive know-how, deep expertise, entrepreneurship and capital through both funds under management and direct investments,” says Peter Ramsay, CEO of Taaleri. “Our technical and financial expertise spans across the entire lifecycle of our investments and projects.”
“We have already accumulated strong experience with investments in the bioindustry over several years. In our new strategy, we will accelerate our growth by increasing these investments,” Ramsay continues.
Taaleri’s updated strategic priorities are:
1. Grow within our business areas through both funds under management and direct investments
- Growth strengthens our market position, attracts talent and makes us more relevant to our value chain.
- We make investments in both talent and companies to drive our growth.
- Our business areas are in different stages of maturity, allowing us to grow profitably.
2. Make substantial industrial investments and co-operate with industrial partners especially in the bioindustry ecosystem
- We want to become a meaningful industrial operator in the rapidly evolving bioindustry ecosystem.
- We make long-term direct minority or majority investments or co-investments in companies that aim to solve global challenges in a profitable, measurable and impactful way.
- We create value and opportunities for all our stakeholders by being a frontrunner in the ecosystem.
3. Expand our investor base outside of Finland and partner with international organisations on investments
- We aim to be a leading manager that investors turn to when considering investing in bioindustry or renewables.
- We strengthen our sales to major institutional clients and international investors both directly and through third-party distributors.
4. Develop impact and sustainability in all investments throughout their lifecycle
- We strive to find and promote solutions to climate and other sustainability challenges with our investments. We emphasise positive impact in our operations.
- We use credible sustainability criteria and targets. We make our investment decisions based on economic factors, impact potential, sustainability, as well as sustainability risk assessments.
Taaleri’s strategy is built on its competitive advantages:
- End-to-end expertise: The robust expertise of our engineers and financial, legal and sustainability experts spans across the entire lifecycle of our investments and projects.
- Commercialisation of business ideas: Taaleri’s long experience, networks with industrial partners, know-how and expertise enable us to anticipate the changes taking place in the market and to execute as well as commercialise potential new ideas.
- Ability to combine ideas with capital: We have extensive experience in executing complex investments. We are able to finance investments through our private equity funds, co-investments or direct investments.
Taaleri’s new long-term financial targets are:
- Growth: at least 15% in Group’s continuing earnings and performance fees p.a. (revised metric)
- Return on equity: at least 15% (unchanged)
- Dividend: at least 50% payout of the FY profit (unchanged)
The return on equity target varies in different businesses based on their capital intensity and profitability. Garantia’s return on equity target is over 10 percent. Private equity fund business only ties up a small amount of capital, and the business's return on equity has been more than 15 percent during the ramp-up phase of the past strategy period. The return on equity target of direct investments depends on the amount of leverage.
Taaleri will present its updated strategy on its Capital Markets Day on Wednesday, 22 November 2023 at 13:00 EET. The event can be viewed via a live webcast at https://taaleri.videosync.fi/cmd-2023/register. The language of the event and the materials is English.
Helsinki, 21 November 2023
Taaleri Plc
Board of Directors
For further information, please contact:
CEO Peter Ramsay, +358 50 343 7493, peter.ramsay@taaleri.com
Distribution:
Nasdaq Helsinki
Key media
www.taaleri.com
Taaleri in brief
Taaleri is a Nordic investment and asset manager that focuses on businesses with industrial-scale opportunities within bioindustry and renewable energy. We create value by combining extensive know-how, deep expertise, entrepreneurship and capital through both funds under management and direct investments. We are a signatory of the UN Principles for Responsible Investment (UNPRI) since 2010, and we joined the Net Zero Asset Managers initiative in 2021. Taaleri’s vision is to become a leading investment manager operating internationally in bioindustry and renewable energy.
Taaleri has EUR 2.6 bn of assets under management in its private equity funds and co-investments. The company has approximately 120 employees. Taaleri Plc is listed on Nasdaq Helsinki.
Head of Investor Relations, Sustainability and Communications Siri Markula, +358 40 743 2177, siri.markula@taaleri.com